Wage Differentials Between Migrant Workers And Urban Workers

In 2014,the State Council promulgated a document named “opinions on further promoting the reform of household registration system".It is said by 2020,100 million of the target population of migrant workers and other permanent residents will be settled in urban.Under this background,the living conditions and income level of the migrant workers have been paid more and more attention.Based on the China general social survey data in 2015(CGSS2015),using unconditional quantile regression model,the author analyzed the wage gap between migrant workers and urban workers on urban labor market,and explained why the gap exist.The conclusions are as follows.First,there is a wage gap between migrant workers and urban workers in China's urban,and the wage of the migrant workers is significantly lower than that of the urban workers.The difference of human capital is the main factor leading to the wage gap between migrant workers and urban workers,but the discrimination also affects the wage of the migrant workers.Second,the discrimination are heterogeneous: for migrant workers who possess low income,the discrimination has no influence;for migrant workers who possess high income,he/she will affected by discrimination.Third,migrant workers are deficient in the skills and resources related to the local labor market.And the existence of the internal labor market in the enterprise led to the exclusion of the migrant workers.Fourth,the return of education are different between migrant workers and urban workers.Using instrumental variable,the author calculated the return of education are 9.02% for migrant worker and 10.8% for urban workers.Fifth,although the education have growth effect to migrant workers,the increase of education cannot help migrant workers avoid discrimination.With the improvement of education level,migrant workers are affected by discrimination.Sixth,the male marriage premium is 23% to urban workers,neither female nor migrant workers has marriage premium.The male marriage premium about urban workers stem from wife's help and family division based on three generations living together.The residential pattern are different between urban workers and migrant workers,leading to migrant workers have no marriage premium.The results of this paper provide new profile for understanding the wage gaps between migrant workers and urban workers.Under these results,the policy suggestions are as follows.First,improving migrant workers' education is the most important way to reduce the wage gaps between migrant workers and urban workers.Second,in order to eliminate labor market segmentation and household registration discrimination,we need to pay attention to migrants workers who possess high income,they are affect by interior labor market and wage ceiling.Third,the fact that migrant workers and urban workers have different marriage premium tell us that the government need transfer the policy goal from individual urbanization to household urbanization.In the short run,the government can promote the realization of housing security and the right to children's education and the reunification of migrant workers' family,so as to promote the integration of migrant workers into cities.